Softtouch has the right to sue Spangled Banners for $200.
According to the terms of the contract between Softtouch Hardware and Spangled Banners, the banner was required to be delivered by December 2. However, Spangled Banners failed to deliver the banner until December 4 due to material shortages. As a result, they did not meet the agreed-upon deadline.
The contract included a clause that stated if Spangled Banners failed to deliver the banner by December 2, they would be required to pay Softtouch $100 for each day after December 2 until the banner was delivered. Since the banner was delivered two days late, Softtouch has the right to seek compensation for the two days of delay, which amounts to $200 ($100 per day).
Therefore, Softtouch can sue Spangled Banners for $200 to recover the compensation specified in the contract for the delay in delivering the banner.
learn more about sue here
https://brainly.com/question/31864151
#SPJ11
is a short-term investment that is considered highly liquid.
a. stock
b. bond
c. cash equivalent
d. mutual fund
Answer:
c. cash equivalent
Explanation:
highly liquid means can be made into cash quickly
Cash equivalent examples are money market funds Treasury bills. Treasury notes. Commercial paper.
in 2008 a problem with money market funds signaled a banking crisis. banks were giving mortgages to people with bad credit histories. on top of that those mortgages were insured so if someone couldn't pay the mortgage the insurers would pay. but at that time there were too many people who couldn't pay mortgages
a. stock is a share of ownership in a company. can't make it into cash unless you sell it.
d. mutual fund : basically a stock of stocks. company gathers money to buy a bunch of different stocks. whole thing is called a portfolio. company sells stocks of that portfolio. those stocks are mutual funds.
b. a bond is basically a loan. bond lasts for a period of time. can't sell it until that period is over. otherwise there is a penalty.
.
hedge funds : the words hedge in hedge means to reduce risk. they make it for people with more money. it combines risky, non risky, long term, & short term investments to hedge or reduce risk.
Regional economic group is defined as ________.
i. an agreement among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services and factors of production between each other
ii. an agreement among companies in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services and factors of production between each other
iii. an agreement among countries in a geographic region to increase tariff and nontariff barriers to the free flow of goods, services and factors of production between each other
iv. an agreement among countries in a geographic region to increase tariff and nontariff barriers to the free flow of goods, services and factors of production with nonmember countries
The answer is Regional economic integration
What will happen to the market for video games if consumer income drops?
A. Graph 1
B. Graph 2
C. Graph 3
D. Graph 4
Answer:
a
Explanation:
When considering a product's characteristics and the rate of adoption, complexity refers to the degree to which a new product is _______.
Complexity has to do with how it's difficult to understand and use the new product.
What is complexity?Complexity simply means the difficulties regarding the use of a particular product.
In this case, when considering a product's characteristics and the rate of adoption, complexity refers to the degree to which a new product is the difficulties to understand and use the new product.
Learn more about complexity on:
https://brainly.com/question/13888967
Name FIVE reasons why businesses do market research on their client base.
Answer:
Identify new customers.
Get to know your existing customers.
Set realistic targets for your business.
Develop new and effective strategies.
Solve your biggest business challenges.
When can an organization share phi with others, according to professional judgment rights?.
An organization can share phi with others, according to professional judgment rights if HIPAA Privacy Rule specifically permits it.
What is HIPAA?The Health Insurance Portability and Accountability Act serves as the federal law that required the creation of national standards.
This standard help to protect sensitive patient health information from unauthorized access.
Therefore, information can only be shared if HIPAA Privacy Rule specifically permits it.
learn more about (HIPAA at;
https://brainly.com/question/11069745
Open-ended credit is credit for which debtors are given a specified amount of credit to purchase specific consumer goods and intangible goods.
Answer: False
Explanation:
Open-ended credit does not work by specified borrowing amounts given to a debtor to purchase specific goods.
Rather it works by giving the debtor a limit on the amount they can borrow and they are allowed to borrow whatever amount they want within that limit.
The credit described in the question is a close-ended credit.
How do you calculated ending equity value ("E")?
Ending equity value (E) is calculated by adding the value of the company's assets to the total amount of capital invested by shareholders.
The liabilities of the corporation, which consist of all existing loans and other obligations, are then calculated by deducting this value.
The final equity value of the corporation is the outcome of this calculation. The closing equity value, which reflects the capital that the shareholders have contributed to the business, is a crucial indicator of the company's financial health.
As the beginning point for gauging the company's performance over time, it also serves as a baseline for upcoming investments.
To learn more about liabilities visit:
https://brainly.com/question/14921529
#SPJ4
which situation is an example of skimming?
a) pop-up windows on a computer asking for you pin
b) a retailer scanning your credit card to steal its number
c) bank statements stolen from your garbage
d) a phone call from someone pretending to be a bank employee
Answer:
B.) a retailer scanning your credit card to steal its number
Explanation:
A private limited company failed. It owed £60,000 in debt. Simon had
£10,000 invested in the company and he had personal assets worth
£100,000. How much could he lose because the company failed? Use
whole numbers only. No pound signs or commas.
Answer:
£10,000
Explanation:
Simon is a shareholder in a private limited company. As a shareholder, he enjoys limited liabilities to the debts of the company. Limited liabilities means that his obligations to the debts of the business are limited to the amount of capital invested. Should the company fail in meeting its obligations, Simon's liabilities to the company will be a maximum of $10,000, which is the amount he invested.
The limited liabilities feature protects shareholders and investors in private limited companies and corporations from losing more than their contributed capital in case a business fails. Simon's personal assets of $100,000 will not feature in any way.
Next O Cover Letters and Résumés: Mastery Test
1
Select the correct answer.
Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. In what
section of her résumé should Josita include these programs?
OA honors
OB. activities
OC. skills
OD. experience
Reset
Submit Test
Next
If Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. The section of her résumé that Josita should include these programs is: C. skills.
What is skills?Skills can be defined as the ability a person or an individual possess when it comes to performing or carrying out tasks. A person can tend to possess inbuilt Skills or acquired skills they known will be of important to them.
Based on the scenario the software programs was the skills that Josita acquired because she learned it, the software program should be included as part of the skills she possess in her resume as this will enables are employer to know the skills she possess.
Therefore If Josita is preparing a résumé for a job teaching graphic design at a high school. She wants to list the software programs she has learned. The section of her résumé that Josita should include these programs is: C. skills.
Learn more about skills here:https://brainly.com/question/1233807
#SPJ1
Why, in your opinion, would an airline choose to rent tires as
opposed to purchasing them and including them in inventory? How
could this relate to the misappropriation of cash?
An airline might choose to rent tires instead of purchasing them and adding them to their inventory to save on costs.
Additionally, by renting the tires, the airline does not have to worry about storing and maintaining them, which can be costly and time-consuming. Renting also allows the airline to be more flexible in terms of fleet size and composition, as they can easily adjust the number and type of tires they need based on demand and changes in their operations.
In terms of misappropriation of cash, renting tires could potentially be used to hide fraudulent activity. If an employee or group of employees were able to set up a fake tire rental agreement with a fictitious company, they could funnel money into this account and use it for personal gain.
However, this would require a significant level of planning and coordination and is not a common occurrence in the airline industry.
To know more about airline visit
https://brainly.com/question/33246680
#SPJ11
Abc purchased equipment that costs 120000 $.it had an estimated useful life of four years and no residual value . the equipment was depreciated by the straight line method and was sold at the end of the third year of use for $ 25000 cash.abc should record:_____________.
i. a loss of $1000
ii. neither again nor a loss the computer was sold at its book value.
iii. neither again nor a loss the gain that occurred in this case would not be recognized
iv. accountants prefer to report softer numbers rather than harder numbers
v. accountants prefer to report harder numbers rather than softer numbers
vi. accountants have no preference when it comes to reporting softer and harder numbers
ABC should record a loss of $25,000 - $30,000 = -$5,000. This is because the equipment was depreciated for three years at $30,000 per year ($120,000 / 4 years), which equals a total of $90,000 in accumulated depreciation. Therefore, the book value of the equipment at the end of the third year would be $120,000 - $90,000 = $30,000. Since the equipment was sold for only $25,000, ABC would need to record a loss of $5,000.
Option ii, "neither gain nor a loss, the computer was sold at its book value," is incorrect because the equipment was sold for less than its book value, resulting in a loss for ABC.
Option iii, "neither gain nor a loss, the gain that occurred in this case would not be recognized," is also incorrect because there was no gain. In fact, there was a loss.
Option iv, "accountants prefer to report softer numbers rather than harder numbers," is incorrect because accountants are required to report accurate and truthful financial information, regardless of whether it is positive or negative.
Option v, "accountants prefer to report harder numbers rather than softer numbers," is also incorrect because accountants are not biased towards any particular type of financial information.
Therefore, the correct answer is option i, "a loss of $5,000."
Know more about "accumulated depreciation".
https://brainly.com/question/28139636
#SPJ11
in 2011, there were 11 modeling agencies in singapore found to have acted together in raising prices for modeling services. these firms acted as a: disunion. bertrand monopoly. cartel. co-op.
In 2011, the 11 modeling agencies in Singapore that acted together in raising prices for modeling services can be described as a "cartel." A cartel is a group of independent firms that collude to control prices, restrict output, or limit competition in a particular market. In this case, the agencies worked together to raise prices for modeling services, behaving like a monopoly but without being a single entity.
In 2011, 11 modeling agencies in Singapore were found to have colluded in raising prices for modeling services. This behavior is characteristic of a cartel, which is a group of firms that work together to reduce competition and increase profits. In this case, the modeling agencies acted as a disunion Bertrand monopoly, which means that each firm set its own price but colluded to maintain higher prices in the market. This type of behavior is illegal and harms consumers by limiting their options and forcing them to pay higher prices for services.
Learn more about cartel here: brainly.com/question/14265043
#SPJ11
What was the opening price of Dow Jones Industrial Average on Jul 09, 2018 in the format of XXXXX.XX?
Answer:
According to yahoo finance, the opening price of the Dow Jones Industrial Average on Jul 09, 2018, is 24519.20.
Explanation:
Dow Jones Industrial Average is a stock indicator of the top 30 companies of the US. Other indicators include NASDAQ Composite and S&P 500.
These indicators are used to assess the performance of the market on a subsequent day. From the historical data from the Yahoo Finance, the value for any day could be found which for July 09, 2018 is 24519.20.
The change brought about by online competition from Amazon and Wal Mart are examples of ______? This is a fill in the blank question
Answer:
The answer is "changing customer preferences"
Explanation:
The consumer desires were perceptions, preferences, disagreements, and intentions which influence customer for consuming the choices by explaining their consumer's conduct, their support, and their needs. for example, The client needs a certain theme, brand, and color,
It's really difficult for a person to create marketing strategies without changing customers ’ preferences. In the corporation, it will maintain its customer base congrats to a comprehensive understanding of the various demand of consumers.Amazon and Wal mart represent a large segment of the E-commerce industries that have large retail and whole scale chains. These companies operate 24/7 and have a customer base.
The change in the buying behavior of the clients and customers is due to the changing customer preferences in the market. These companies are the ones that drive online sales and marketing. The differences in price, brand value and tastes and preferences of people.Thus the changing nature of people preferences in the market.
Learn more bout the brought about by online competition from Amazon and Wal Mart.
brainly.com/question/23124943.
Which organization should a high school hospitality student consider joining to develop leadership skills and business knowledge?
American Culinary Federation
American Hotel & Lodging Association
Future Business Leaders of America
Resort Hotel Association
High school students can gain practical experience in entrepreneurship, business, and marketing through DECA. Its objective is to provide upcoming leaders with the skills necessary for careers in lucrative industries including marketing, management, hospitality, and finance. There are presently 177,000 DECA members in secondary schools.
Should I enlist in DECA?You can gain an advantage over your rivals with the use of DECA's resources, expertise, and talents. A little bit of ease has been added to applying for internships, scholarships, jobs, and colleges. The fact that you are a member of DECA demonstrates that you are motivated, academically competent, community-minded, and career-focused—ready to take on your future.
In high school, is DECA a good idea?One of the most well-known groups for high school students is DECA, which has more than 3,200 participating schools. Numerous graduates of its successful programs enjoy a stellar reputation.
To know more about DECA visit:
https://brainly.com/question/30410521
#SPJ1
Which aspect of writing business reports relates to the component of credibility known as competence?.
Providing facts that help decision makers' aspect of writing business reports relates to the component of credibility known as competence.
Competence is the capacity to perform an action successfully. You have the ability to complete a task or job successfully. The knowledge and abilities required to solve a quadratic equation are examples of competence. Alternately, it could include the considerably more extensive and varied sets of talents required to run a multinational organization.
The objective and subjective aspects of a source's or message's plausibility are included in credibility. The concept of "Ethos" is concerned with the speaker's persona.
Trustworthiness and expertise, which both have objective and subjective components, are the two main components of credibility. Although established reliability is an objective criterion, trustworthiness is primarily based on subjective criteria.
To learn more about Competence visit: https://brainly.com/question/28208453
#SPJ1
If the breakeven point is 20,000 and the contribution margin is $1.30, how much are fixed costs?
A) 20,000
B) $26,000
C) $15,384
Fixed costs can be calculated by subtracting the contribution margin per unit from the selling price per unit and then dividing the result by the contribution margin per unit.
Using the given information, we can calculate the fixed costs as follows:Contribution margin per unit = Selling price per unit - Variable cost per unit$1.30 = Selling price per unit - Variable cost per unit Breakeven point = Fixed costs / Contribution margin per unit$20,000 = Fixed costs / $1.30 per unit
Solving for fixed costs, we get:
Fixed costs = $20,000 x $1.30 per unit
Fixed costs = $26,000
Therefore, the fixed costs are $26,000.
Learn more about margin here
https://brainly.com/question/28180283
#SPJ11
Your firm is thinking about investing $200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $33 comma 00033,000 in year one and then increasing by $11 comma 00011,000 more each year thereafter. Relevant expenses will be $20 comma 00020,000 in year one and will increase by $10 comma 00010,000 per year until the end of the cell's ninenine-year life. Salvage recovery at the end of year ninenine is estimated to be $11 comma 00011,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 1010% per year?
Answer:
EAW = -$17,545.71
Explanation:
initial investment = $200,000
cash inflows;
Year 1 = $33,000Year 2 = $44,000Year 3 = $55,000Year 4 = $66,000Year 5 = $77,000Year 6 = $88,000Year 7 = $99,000Year 8 = $110,000Year 9 = $132,000cash outflows:
Year 1 = $20,000Year 2 = $30,000Year 3 = $40,000Year 4 = $50,000Year 5 = $60,000Year 6 = $70,000Year 7 = $80,000Year 8 = $90,000Year 9 = $100,000EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs
to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84
EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91
to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395
EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62
EAW = $70,905.91 - $88,451.62 = -$17,545.71
Superior corp. applies manufacturing overhead to production at 65% of direct labor cost. during the year ended 20xx, manufacturing overhead of $129,220 was applied to production; actual manufacturing overhead was $156,500. ending work in process inventory was $22,440 and ending finished goods inventory was $31,020. work in process inventory increased by 20% during the year and finished goods inventory increased by 10% during the year. unadjusted cost of goods sold was $574,300. complete the following schedule:
Direct Labor Cost = $198,800
Beginning finished goods inventory = $28,200
Overhead = $27,280
COGM = $577,120
Current Manufacturing Cost = $249,100
Adjusted Cost of goods sold = $601,580
Working Notes:
(i) Direct labor cost = Overhead applied / direct labor cost applied to overhead as a percentage
Direct Labor Cost = 129220 / 0.65
Direct Labor Cost = $198,800
(ii) Beginning work in process = Ending WIP / (1 + percent increase)
Beginning WIP = 22440 / (1 + 0.20) = 22440 / 1.20
Beginning WIP = $18,700
Beginning finished goods inventory = 31020 / (1 + 0.10) = 31020 / 1.10
Beginning finished goods inventory = $28,200
(iii) Underapplied / Overapplied overhead = Actual OH - applied OH
Overhead = 156500 - 129220
Overhead = $27,280
(iv) Cost of Goods manufactured = Cost of products sold without adjustment + Ending finished goods inventory - Beginning Finished goods inventory
COGM = 574300 + 31020 - 28200
COGM = $577,120
(v) Current manufacturing cost = cost of goods manufactured + Ending WIP - Beginning WIP
Current Manufacturing Cost = 577120 + 22440 - 18700
Current Manufacturing Cost = $580,860
(vi) Direct material used = Current manufacturing cost - direct labor -overhead applied
Direct Material = 599560 - 198800 - 129220
Direct Material = $252,840
To know more about Overheads, refer to this link:
https://brainly.com/question/29604018
#SPJ4
Does mixed economy have freedom of choice?
Under a mixed economy, people have the freedom to produce products and services, hold property, select their occupation, and choose or demand goods and services according to their needs.
A mixed economy is an economic system that combines the characteristics of both capitalism and socialism. A mixed economy protects private property and allows a level of economic freedom in the use of capital, but meanwhile also permits governments to interfere in economic activities in order to obtain social aims.
This mixed type of economic system allows people to have the freedom to produce products and services, hold private property, select their occupation, and choose or demand goods and services according to their needs and wants.
You can learn more about mixed economy at
https://brainly.com/question/27056981
#SPJ4
_______________ are a comprehensive tool, especially since it would cost our society so much to prosecute and allow a trial for every individual that committed a crime.
Answer:
"Plea bargains" would be the correct approach.
Explanation:
The mechanism by which a convicted criminal as well as lawyer arrive at a mutually agreeable conclusion of such a criminal proceeding needs to be approved by the judge. It is indeed a deal during which the offender seeks to make a reduced case guilty verdict and indeed the complainant offers to dismiss an even more severe punishment.Economists use the term ________________ to describe the part of the budget deficit that is a result of a downturn in economic activity.
Answer:
Cyclical deficit
Explanation:
If your gross pay is $1500 each pay period, and you are paid semimonthly, what is your yearly gross pay?
Answer:
$39,000
Explanation:
Ideally, we'd know if every pay period is 2 weeks, but that's pretty standard. They say semimonthly because if you look at a calendar over a year, there are a couple of months where you will have 3 paychecks.
So. 52 weeks/year, divided into 2-week pay periods = 26 pay periods/year.
26 x 1,500 = 39,000
Please let me know if you have any questions about this.
what to argue about financial literacy
Answer: Finance Course Prompts Debate,” argues that “the $600,000 is a low cost if the [financial literacy program] is effective. An
effective course will return that investment,” speaking in reference to the cost of the program. Courses, especially financial
literacy, greatly give back on investments made in them by using the students’ education gained from the class.
Explanation:
describe the interrelationship of the primary business activities.
The primary business activities are interrelated because they all work together to create a successful business.
For a firm to succeed, all of its essential components—sales, marketing, finances, and operations—must function harmoniously.
Sales is in charge of generating income, marketing aids in raising awareness of the company and its goods, finance manages finances, and operations make sure that goods and services are delivered on time and to the proper customers.
To help the firm reach its objectives, all of these activities must be coordinated and harmoniously operated.
Revenue generation, which is important for the firm to operate and expand, depends on sales activities.
Marketing efforts are required to raise consumer knowledge of a company's offerings, which may result in higher sales.
To know more about business,
https://brainly.com/question/14303195
#SPJ4
HELP ASAP which is an example of a short term SMART career goal A i will work for my dad this summer because i dont have a car so he can drive me to work B I will volunteer at the local animal shelter because i need practical experience for vetinary school C I will apply for a job at acme enterprises because they pay the highest hourly wage in town DI want to work with my friends this summer because i wont have the chance to see them when i go to college.
Answer:
The answer is B
Explanation:
It makes more sense, and also the vet job could be a short time, but it is a smart choice. It is a smart choice because it shows that the vet job will help in the future
(T/F) Deregulation includes reducing government control over some aspects of the private industry while increasing control of other
True. Deregulation refers to reducing government control over certain aspects of the private industry, such as eliminating regulations that restrict competition or require certain standards.
However, it may also involve increasing control in other areas, such as enforcing safety regulations or protecting consumer rights. The goal of deregulation is typically to increase market efficiency and promote economic growth, but it can also lead to potential risks and challenges if not carefully managed. Overall, deregulation involves a complex balancing act between reducing unnecessary government control and ensuring adequate protection and oversight of key industries and sectors.
To know more about Deregulation visit:
https://brainly.com/question/10677525
#SPJ11
Nike Inc. Had sales of $ 19. 2 billion in 2009. It expects that its sales to grow at a rate of 10% in 2010, but then slow down by 1% per year to the long run growth rate that is characteristic of the apparel industry -5% - by 2015. Based on Nikes past profitability and investment needs, it is expected EBIT to be 10% of sales, increases in net working capital requirements to be 10% of any increase in sales and capital expenditures to equal depreciation expenses. If Nike has $2. 3 billion in cash, $32 million in debt, 486 million shares outstanding, a tax rate of 24% and a weighted average cost of capital of 10%, what is the estimated value of Nikes’ stock in early 2010? If Nike Inc. Can reduce its operating expenses and raise its EBIT to 11%, how would the estimate of the stocks’ value change?
If Nike Inc. reduces its operating expenses and raises its EBIT to 11%, the estimated value of Nikes’ stock in early 2010 will increase from $6.96 per share to $7.18 per share, an increase of $0.22 per share.
First, we need to compute the estimated value of Nikes’ stock in early 2010 as follows;Calculation of the estimated value of Nikes’ stock in early 2010;To calculate the estimated value of Nike’s stock in early 2010, we need to determine the free cash flows of Nike from 2010 to 2015 and the present value of those cash flows. In the present value calculation, we must use the weighted average cost of capital (WACC) as the discount rate and add the value of non-operating assets. To determine free cash flows, we must first estimate sales for 2010 through 2015 using the information provided.Sales in 2009 were $19.2 billion, and Nike expects sales growth of 10% in 2010, which gives sales in 2010 of:2010 Sales = $19.2 billion × 1.10 = $21.12 billionWe can now estimate sales for 2011 through 2015. The growth rate in sales will decline by 1% per year, so the sales forecast is:2011 Sales = $21.12 billion × 1.09 = $23.01 billion2012 Sales = $23.01 billion × 1.08 = $24.85 billion2013 Sales = $24.85 billion × 1.07 = $26.66 billion2014 Sales = $26.66 billion × 1.06 = $28.44 billion2015 Sales = $28.44 billion × 1.05 = $29.85 billionNext, we need to estimate costs and expenses associated with these sales levels. From the information provided, we know that EBIT is expected to be 10% of sales. Thus, EBIT for each year can be computed as follows:EBIT = Sales × EBIT/SalesEBIT = Sales × 10%EBIT = 0.10 × 2010 SalesEBIT = $2.112 billion. The tax rate is 24%, which gives a tax bill of:Tax = EBIT × tax rateTax = $2.112 billion × 0.24Tax = $506.88 millionThus, net income is:Net income = EBIT - Taxes Net income = $2.112 billion - $506.88 million Net income = $1.605 billionWe can now calculate the free cash flows for 2010:FCF = Net income + Depreciation - Capital expenditures - Increase in net working capitalFCF = $1.605 billion + $0 - $1.605 billion × 0.10 - ($21.12 billion - $19.2 billion) × 0.10FCF = $1.605 billion + $160.5 million - $160.5 million - $192 millionFCF = $1.453 billionUsing the information provided, the cash flow from non-operating assets is $2.3 billion - $32 million = $2.268 billion.To calculate the present value of free cash flows, we must first estimate a discount rate. The weighted average cost of capital is 10%, so we will use this rate as the discount rate. Thus, the estimated stock price in early 2010 is:PV of FCFs = $1.453 billion / (1 + 0.10) + $2.268 billion / (1 + 0.10) = $1.321 billion + $2.062 billion = $3.383 billionNumber of shares outstanding = 486 millionValue per share = $3.383 billion / 486 million shares = $6.96 per shareTherefore, the estimated value of Nikes’ stock in early 2010 is $6.96 per share.Next, we need to determine how the estimate of the stock's value change if Nike Inc. reduces its operating expenses and raises its EBIT to 11%.Assuming EBIT increases to 11%, then EBIT for 2010 will be:EBIT = Sales × EBIT/SalesEBIT = Sales × 11%EBIT = 0.11 × 2010 SalesEBIT = $2.3232 billionThe tax bill will be:Tax = EBIT × tax rate Tax = $2.3232 billion × 0.24Tax = $557.568 million Net income will be:Net income = EBIT - TaxesNet income = $2.3232 billion - $557.568 millionNet income = $1.765632 billionFree cash flow will be:FCF = Net income + Depreciation - Capital expenditures - Increase in net working capitalFCF = $1.765632 billion + $0 - $1.765632 billion × 0.10 - ($21.12 billion - $19.2 billion) × 0.10FCF = $1.765632 billion + $176.5632 million - $176.5632 million - $192 million FCF = $1.569632 billion Using the information provided, the cash flow from non-operating assets is $2.3 billion - $32 million = $2.268 billion.To calculate the present value of free cash flows, we must first estimate a discount rate. The weighted average cost of capital is 10%, so we will use this rate as the discount rate. Thus, the estimated stock price in early 2010 with EBIT of 11% is:PV of FCFs = $1.569632 billion / (1 + 0.10) + $2.268 billion / (1 + 0.10) = $1.426938 billion + $2.062 billion = $3.489938 billion Number of shares outstanding = 486 millionValue per share = $3.489938 billion / 486 million shares = $7.18 per shareFor more such questions on value
https://brainly.com/question/27993050
#SPJ8